Turnover in the student accommodation sector is set to soar to £2.3bn by the end of the year, as appetite for the sector rises.
In the year to date, £763m has been generated through sales of student accommodation, and revenue is expected to reach £2.3bn for the total year, according to Jones Lang LaSalle.
The figure is almost double the £1.2bn JLL calculated for 2011.
Speaking at JLL’s alternative investments seminar earlier this week, Richard Taylerson, director in JLL’s student accommodation team, said: “We are seeing much more forward funding in this sector, and there is a lot of private equity around looking into this market.”
He said the forecast for this year was bolstered by large deals, including Round Hill Capital’s £420m purchase of Blackstone’s Nido student accommodation portfolio.
Johnny Manns, managing director of student housing developer and operator Urbanest UK, added: “As the sector matures and stock increases, the level of competition for student housing developers is now opening up, and firms will have to think how they can distinguish themselves.”
He also revealed Urbanest, which also operates in Australia, is planning on expanding into at least three new countries.
Listen to Joanna Bourke’s podcast interview with JLL’s Richard Taylerson and Urbanest UK’s Johnny Manns below, or download it here. Althernatively, head to Estates Gazette’s iTunes channel to subscribe to our latest podcasts.
joanna.bourke@estatesgazette.com
